Warren is developing a big, old oil field in Southern California. They have to drill in urban areas. Biggest problem is complying with regulations on what to do with natural gas when the wells are not close to infrastructure and pipelines. They have limits on how much they can flare. They use most of it to run microturbines to power the pumps.
Warren latest reserve report shows PV10 or 443million vs a market cap of $276million. In this old field, Warren is using new technology to drill horizontal oil wells to recover small pockets of oil in this large field. These aren't huge wells but there are plenty of drilling opportunities and the success rate is high.
Warren is producing 4800boepd. In Q2, they earned .12eps. Half of that was hedge derivative income but the company expects more oil wells to come online to boost income and net profits.
Not as sexy as Samson or Sundance but profitable, growing oil production and got a big acreage position in the Niobrara, although it's in the gas heavy area.
Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.
If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.